At the crossroads of the common law and civil law traditions, Puerto Rico is uniquely positioned to become one of the more attractive arbitral hubs of the Americas. Not only does it offer parties a modern international arbitration statute based on the UNCITRAL Model Law, but equally importantly embraces a manifestly staunch pro-arbitration policy.
Interestingly, the cohabitation in Puerto Rico of a U.S. federal court along with local courts, and the concurrent applicability of both federal (including U.S. investment treaties) and local statutes make the island’s legal repertoire particularly attractive to foreign merchants and investors. The fact that the New York Convention is binding in the island, as required by the Supremacy Clause of the U.S. Constitution, has no doubt eased Puerto Rico’s entry into the global arbitral landscape.
In the next few years, as Puerto Rico completes the restructuring of its public debt and puts its fiscal house in order, ever growing levels of investment and commercial activity in strategic areas of the economy (i.e., energy) will inevitably expose the island to a higher volume of recognition and enforcement applications under the New York Convention. Thus, merchants and investors doing business in Puerto Rico, or simply seeking recognition and enforcement of a foreign award in the island, are well advised to explore Puerto Rico’s unique legal topography.
Iurgium [previously Spain Arbitration Review]